1937 before War of Resistance against Japanese Aggression, the total circulation of legal tender did not exceed1400 million yuan. During the period from 1937 War of Resistance against Japanese Aggression to 194 1 Anglo-American War, in order to destroy the economy of China's rear area, Japan forcibly exchanged French currency issued by Japan in the Japanese occupied area, and then sent it to Shanghai to exchange foreign exchange of the National Government. The National Government obtained loans of more than 1000 million pounds and $50 million from Britain and the United States respectively, but they were still not enough to support the exchange rate of the French currency. 1940, cancel unrestricted foreign exchange transactions. So the value of legal tender began to fall.
By the end of the war, it had been issued to 556.9 billion yuan, about 400 times more than before the war. After 1946, the circulation of legal tender increased even more, from 556.9 billion in the victory of the Anti-Japanese War to 65438+604 trillion in August, which increased by more than 1000 times in three years, causing vicious inflation among the people and the complete collapse of legal tender. When Song Ziwen was prime minister, he tried to stabilize legal tender through financial policy, and sold the gold in stock and bought it back. However, because the circulation of legal tender is still increasing, it has not achieved results. 1948 After May, another currency reform was planned, and the legal tender was changed into gold certificates.